Terrebonne council goes out-of-area to hire parish insurer

A Terrebonne Parish-based insurance broker calls it quits after a three-year contract with TPCG. USI Insurance Service Corp. pulled its proposal to continue business with parish government after administrators decided to do business with external firms; a money-saving decision but council members and residents are questioning the validity of choosing an outside provider.

Parish President Don Schwab presented a proposal to seek insurance from two New Orleans-based companies n Gallagher & Co. and Eagan Insurance n to the Public, Procedure and Legal Committee on Oct. 9. A vote by the council, with absence of District 4 Councilwoman Teri Cavalier, on the proposal was held during Wednesday’s regular council meeting.

Representatives from USI were present for discussion during parish meetings. Ed Daigle, spoke on the firms behalf, thanking the council for time and support and formally withdrew their proposal.

“It is apparent that we have been put in a no-win situation. We have no desire to be where we are not wanted, is apparent for reasons still unknown to us that administration is intent on placing this business with out-of-town brokers,” said Daigle.

Schwab said the decision came after evaluating requests for proposals, rather than bids, which would have required the parish to go with the lowest price. Proposal requests allow government entities some room to negotiate specifics. Savings incurred with Gallagher total $2,000 over three years, a two percent rate.

The decision to drop USI sparked critical debate and left some council members puzzled.

Schwab said after a 90-day evaluation process, the administration decided that Gallagher represented the best overall value to the parish while trying to fulfill the request of council members to search for the best proposal without confinement of the parish borders.

“I respectfully ask that you disregard the political pressures currently being asserted and stay true to the original mission,” Schwab told the council. “I ask you to give me the needed approval to move this critical issue forward, as stated by both this administration and participating brokers, time is of the essence when dealing with this matter.”

Overall value included eliminated “issues” the parish had with USI. “There were past situations that occurred that caused a loss of confidence in some of the past brokers,” said parish administrator Barry Blackwell. “There were other issues involved other than price.”

Councilman Clayton Voisin asked Blackwell to explain further; Blackwell declined, saying he did not wish to address those issues in public.

Daigle explained to councilmember past issues Blackwell mentioned. The first related to an instance where a broker refused to sign an agreement in conflict with ethics legislation passed through the Independent Agents Association. As a member of IAA, USI was following legislation protecting broker rights; these actions were deemed problematic to administration. Gallagher & Co. is also a member of the IAA.

Additional concerns of administration involved suspension of marketing after Hurricane Rita. A wholesaler representing Cooney, Rikard & Curtin, holding the parish account for three years, received a fee that was less than half received during the previous year from an administrative consultant.

Work was suspended until a reasonable offer was received; USI notified administration immediately and worked resumed as the issue was cleared.

“We respect the parish government and council in their decisions to pick whoever they want to do business with, respect their rights to hire consultants, but we will not and have not sat back and allow our reputation to be disparaged by innuendo and unfounded, unproven allegations that regard performance issues,” Daigle said.

After public forum, address from administration and then Daigle, council voted. Giving the green light to Gallagher & Co. with an 8-0 vote, members felt the need to approve without delay. The TPCG property coverage will expire Dec. 31. Casualty brokers will undergo further review, as that contract does not conclude until April of 2007.

“We are way passed this issue, we are over it, through with it. We had our regular sales meeting [last week] and this October is the best we have had as an agency. [This] account has taken up way more time than it should have n not necessarily in doing the insurance work but in dealing with all the issues that followed the processes. USI is better off today than it was a week ago,” said Daigle.

The Terrebonne Parish Council Government was a $30,000 revenue account, but USI says that this year is proving to be more profitable then previous, already exceeding year end revenue goals in ten months time. Daigle says USI is ready to move on and is excited about the future.

With a local office off of Tunnel Boulevard in Houma, USI is well known throughout the community providing business and supporting service programs in the Tri-parishes.

Some members voiced concern on how matters were handled, feeling left in the dark and having to come to the final vote, influential to administration, councilmember and public alike.

“This is a very uncomfortable situation,” said Councilman Alvin Tillman. “I think in the future we need to meet with [administration] as well, because at the end of the day, it’s going to come here for us not only to debate but to vote on. We need to be sitting in on the meetings in terms of who we are going to go with and the proposal process.”

Other agenda items:

Fire Chief Brian “Bubba” Hebert was honored and commended by TPCG for his 25 years of service to the HFD, upon his retirement.

October was proclaimed Domestic Violence Awareness month, and Breast Cancer Awareness Month in Houma-Terrebonne.

The council moved to issue a public hearing, concerning reduction of the speed limit near the Recreation Center and boat launch, for added safety of motorists and pedestrians.

The council declared the result of the One-Cent Sales tax, appearing on the Special Elections ballot during Sept. 30 voting. Voters did not approve the tax.

The council approved the public hearing on the proposed 2007 Budget, as submitted by the Parish President.

The council created a ‘No Wake” zone in Bay St. Elaine near the CononcoPhillips Facility.

The council created a “No Through Truck Traffic” zone for Back Project Rd. in Schriever.

The council appointed Ronney Picou to the Airport Commission as Albert Guidry steps down; Guidry served for 15 years.

Andrea Carlson can be reached at (985) 876-3008 or andrea@tri-parishtimes.com